Based on the policies announced by the central and state governments, housing sales grew by 73 per cent on a quarter-on-quarter basis across 7 major cities in India in Q4 2020. And coupled with incentives provided by RBI Developers.
CAGR of 1-6 per cent in the high-end segment
While property prices have grown at a CAGR of 1-6 per cent in the high-end segment and around 2-7 per cent in the mid-segment since 2010, GDP per capita grew at a CAGR of 4.0 per cent between 2010 and 2020.
GDP increased
Moreover, the growth in GDP per capita for the top 7 cities was above the national average, with Bengaluru reporting the highest CAGR (6.6 per cent). Therefore, income growth has outpaced the average increase in property prices, further contributing to housing affordability.
Cheap Home Loan
In addition, the RBI gradually reduced the repo rate from 6.25 per cent in February 2019 to 4.0 per cent in May 2020, due to which the interest rate on home loans has come down to 6.7-6.9 per cent.
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